Libertarian Democrats support the majority of positions of the Democratic Party. However they do not necessarily share identical viewpoints across the political spectrum; that is, they are more likely to support individual and personal freedoms, although rhetorically within the context of Democratic values.[9]

In general they support tax cuts, Second Amendment rights, same-sex marriage, the decriminalization of marijuana, a non-interventionist foreign policy, and to a certain extent, hard money. They are more likely to oppose deficit spending, protectionism, subsidies (especially to corporations) race-based affirmative action and many regulations on small businesses.[10]

They staunchly support civil liberties and agree with the national party's stances on civil rights, separation of church and state, and habeas corpus for unlawful combatants; they oppose indefinite detention without trial or charge, the Guantanamo Bay detention camp, the USA PATRIOT Act, warrantless wiretapping, the War on Drugs, bans on gambling, and prohibition of prostitution.[11]

While maintaining a relatively libertarian ideology, they may differ with the Libertarian Party on issues such as consumer protection, health care reform, anti-trust laws and the overall amount of government involvement in the economy.[9]

In 1828, the modern Democratic Party was established from old factions of the defunct Democratic-Republican Party as Martin van Buren unified political figures around Andrew Jackson and his ideas of Jacksonian Democracy. Libertarian ideas within the party stood for low tariffs, expansion of voting rights, and opposition to anti-immigrant nativism. Factions such as New York City's Locofocos were radically democratic advocates of free trade and hard money who stood against monopolies.

Slavery was always a contentious issue amongst Democrats, dating back to the party's founding. Thomas Jefferson, although a slaveholder, was highly critical of the institution, and wrote in defence of its abolition.

Despite Jefferson's influence, the majority of the party, however, took a conservative approach to the issue of slavery, advocating conservation of the institution. Those Democrats who took the libertarian position that slavery was an abomination were labelled "Barnburners" by their opponents, the idea being that libertarian Democrats were the sort that would burn down their own barns to get rid themselves of rat infestations. Libertarian Democrats referred to the conservative faction as "Hunkers." See Barnburners and Hunkers.

After the Civil War, the Bourbon Democrats came to power within the party. They represented business interests, supported banking and railroad goals, promoted laissez-faire capitalism, opposed imperialism and U.S. overseas expansion, prohibition of alcohol and fought for the gold standard. After decades of Republican dominance, Bourbon Democrat Grover Cleveland became President of the United States and opposed increasing the tariff and the annexation of Hawaii.

The Bourbons were in power when the Panic of 1893 hit, and they took the blame. Party infighting began leading to the showdown in 1896 between the Bourbon Democrats and William Jennings Bryan.

After election losses in 2004, the Democratic Party reexamined its position on gun control which became a matter of discussion, brought up by Howard Dean, Bill Richardson, Brian Schweitzer and other Democrats who had won in states where Second Amendment rights are important to many voters. The resulting umbrella stance on gun control brought in libertarian minded voters, influencing other beliefs.